Last updated on February 12th, 2021 at 05:12 am
Last Updated on February 12, 2021 Posted by Colonial Acres Coins
Bullion coins are some of the most interesting and useful coins made by the Royal Canadian Mint and other mints around the world. These are different from regular coins and other collectible coins. They can play a unique role in your numismatic undertakings. However, a lot of people don’t fully understand what they are or how to use them. The following information will help you get started with bullion coins.
What Are Bullion Coins?
Standard coins made for circulation have varying combinations of common and precious metals and are usually worth their face value. Collectible coins, including limited-run commemorative ones, are worth their market value (often above face value). Special coins made for collectors often have high levels of silver and other precious metals.
Bullion coins are a little different. They are made of high-purity silver or gold (sometimes also copper and other metals). Unlike standard and collectible coins, bullion coins are valued based on their precious metal contents. They are primarily a vehicle for owning, storing and transacting precious metals such as gold and silver.
Interestingly, despite many people not knowing about or understanding them, bullion coins have existed for thousands of years. They were the main form of currency in most cultures for much of history. Today, the international fiat currency system has removed the need for precious metals in every coin. However, bullion continued to exist as a way to exchange and invest in precious metals.
What Are the Types of Bullion?
Coins are not the only type of bullion you can buy. Since the value of bullion is derived from the amount of precious metal, the shape of the bullion doesn’t matter. Instead, the value is measured primarily in weight (usually in troy ounces). These are some of the types of bullion you can buy:
- Coins: Coins are one of the best forms of bullion. They are sometimes produced officially by national mints, helping to guarantee their content. Additionally, they are very easy to manage, exchange and store.
- Bars: Alternatively, you can buy bars. This is one of the other traditional forms of bullion. Many countries (as well as organizations and individuals) have stored significant wealth throughout history in bullion bars.
- Rounds: These are round bullion products that are similar to coins but may be formed into other shapes. They have no face value and aren’t printed with official marks of a mint.
- Bullets: Similar to rounds, these are simply pieces of bullion that have been formed into bullet shapes. They are a popular alternative to coins and bars.
Why Should You Add Bullion Coins to Your Collection?
There are a few reasons why someone may want to buy bullion coins. The primary reason is for the precious metal content. The markets for gold, silver and other metals provide investment opportunities. Some people buy bullion with the anticipation that the price will go up in the future.
Other people and organizations buy bullion coins because they can hedge against inflation. This can be especially pronounced in situations where a fiat currency may suffer significant inflation over a short timeframe. For this reason, some people buy bullion as a way to prepare for the unexpected.
Finally, many numismatists buy bullion coins for their aesthetics and collectability. While bullion is primarily a vehicle for owning and exchanging metals, some of the coins produced are noteworthy and valuable in their own right. Some commemorative coins are designed as high-purity and high-weight bullion coins.
Find Bullion Products at Colonial Acres Coins
Colonial Acres Coins is home to a healthy market for bullion coins and other products. Whether you want to buy or sell your bullion, we can help you do it. Use our bullion corner to make your investment or collection goals happen.